ZuoTi.Pro
Question

2 If the expected rate of return on the market portfolio is 13% and T-bills yield...

2

If the expected rate of return on the market portfolio is 13% and T-bills yield 5%, what must be the beta of a stock that investors expect to return 10%? (Round your answer to 4 decimal places.)
  Beta of a stock   
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
2 If the expected rate of return on the market portfolio is 13% and T-bills yield...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • If the expected rate of return on the market portfolio is 13 percent and the T-bills...

    If the expected rate of return on the market portfolio is 13 percent and the T-bills yield is 6 percent, what must be the beta of a stock that investors expect to return 10 percent

  • Problem 12-23 CAPM and Expected Return (LO2) If the expected rate of return on the market...

    Problem 12-23 CAPM and Expected Return (LO2) If the expected rate of return on the market portfolio is 12% and T-bills yield 4%, what must be the beta of a stock that investors expect to return 9%? (Round your answer to 4 decimal places.)   Beta of a stock   

  • The risk-free rate of return is 5%, the expected rate of return on the market portfolio...

    The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pa Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on al reinvested earnings forever. ys out 60% of its earnings in dividends, and the latest earnings announced were $700 per share. a. What is...

  • The risk-free rate of return is 5%, the expected rate of return on the market portfolio...

    The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 16%, and the stock of Xyrong Corporation has a beta coefficient of 1.4. Xyrong pays out 60% of its earnings in dividends, and the latest earnings announced were $7.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 25% per year on all reinvested earnings forever. a. What is the...

  • The risk-free rate of return is 4%, the expected rate of return on the market portfolio...

    The risk-free rate of return is 4%, the expected rate of return on the market portfolio is 12%, and the stock of Xyrong Corporation has a beta coefficient of 1.5. Xyrong pays out 25% of its earnings in dividends, and the latest earnings announced were $6.00 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever. a. What is the...

  • The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%....

    The Treasury bill rate is 4%, and the expected return on the market portfolio is 14%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.4? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.7 offers an expected return of 9.0%, does it have...

  • Assume that you manage a risky portfolio with an expected rate of return of 15% and...

    Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 40%. The T-bill rate is 5%. Your risky portfolio includes the following investments in the given proportions: Stock A 24 % Stock B 33 Stock C 43 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have...

  • The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong...

    The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporation has a beta coefficient of 1.2. Xyrong pays out 40% of its earnings in dividends, and the latest earnings announced were $10 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 20% per year on all reinvested earnings forever. a. What is the...

  • The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%....

    The Treasury bill rate is 4%, and the expected return on the market portfolio is 11%. According to the capital asset pricing model: a. What is the risk premium on the market? b. What is the required return on an investment with a beta of 1.6? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) c. If an investment with a beta of 0.8 offers an expected return of 8.6%, does it have...

  • The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%....

    The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model: d. If the market expects a return of 10.8% from stock X, what is its beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT